No rise seen in senior tax credit

Larry Carson

Oct. 11, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Despite estimates that more residents might apply for Howard County's property tax credit for seniors, at greater cost to the county treasury, the number of applications seems in line with prior years, finance officials said.

Through Sept. 14, the county had received 1,051 applications, compared with 1,175 for all of fiscal 2009. Last year, the program cost the county $447,300, compared with $371,838 so far this fiscal year. That does not count 168 homeowners eligible for a credit whose applications are awaiting review by state tax authorities. Residents have until Nov. 2 to apply.

In fiscal 2009, the average county credit was $540, nearly the same as the year before. Figures through mid-September for fiscal 2010 appear to be in line with those for past years, finance officials said.

County officials had estimated three years ago that up to 2,400 seniors might qualify for up to $1.5 million in annual property tax relief.

"We're still not closed out for the year," said Linda Watts, chief of the Bureau of Revenue for the county Finance Department. She said this year's results seem consistent with those since fiscal 2007, when the tax relief measure was passed in the heat of the 2006 election campaign.

Residents 70 and older with annual incomes under $72,850 and assets under $500,000, not including their home, are eligible for a property tax credit of 25 percent for this fiscal year. The credits will show up on July's tax bills.

To obtain the credit, and to minimize the impact on county revenue, residents must also apply for relief under the state's Homeowner's Property Tax Credit program. County tax credits are awarded only after all available state credits are exhausted, which has been a sore point for some because those with lower incomes might qualify for state relief of more than 25 percent of their bill, meaning that they would get no additional aid from the county.

Ted L. Meyerson, who chaired a citizens committee that spent more than a year studying the program and its initial results, said this year's figures prove that it is working about as well as can be expected.

"It's not changing. It's static. We're coming up with the same kind of numbers," he said. "We've reached the people we're going to reach."

But Donald Dunn, another former committee member, disagreed.

"By tying in with the state, you never really know what's going on," said Dunn, an outspoken member of the committee who pushed for changes to the law but attracted little support.

Dunn, 80, wants each person who qualifies under Howard guidelines to get tax relief from the county, regardless of the credits they get from the state. Dunn said he qualifies for a state tax credit of about $1,000 but gets no county tax relief because of the size of his state credit.

Dunn is one of 28 Howard taxpayers who in fiscal 2009 deferred the increase in his county property tax under a separate county program for those 65 and older. The deferred taxes become a lien, which will be paid when the property is sold. That program cost the county $6,466 last fiscal year. Dunn said it is essentially an interest-free loan that he couldn't turn down, though many seniors are wary of allowing liens on their property.

Dunn said he doesn't expect the senior tax credit totals to increase.

"They're not promoting the program. It will slowly diminish," he said. "The average person knows nothing about it."

Meyerson contends that the county has done everything it can to inform and encourage seniors eligible for the tax relief to apply for it.

County workers "tried to reach everybody in the world," he said. The citizens task force disbanded in November 2008 after rejecting suggestions from Dunn and Frank Chase to recommend changes that would open the county program to more people -- such as severing its ties to the state or eliminating the asset test.

Watts said her agency is making fewer visits to county senior centers than in the program's first years, but the Office on Aging and the Finance Department suggest the program to any seniors who call for advice on finances or tax bills.

"We continue to do our outreach," she said.

County workers will also assist taxpayers who need help with forms or with determining eligibility.

According to figures through Sept. 14, 613 of 1,051 applicants were approved for the county property tax credits. Another 176 homeowners will not get the county credit because their state credit exceeded it. State tax officials were still reviewing 168 eligible applications, 67 were returned for missing information, 26 were denied for lack of eligibility and one was withdrawn.

Newstex ID: KRTB-0034-38726547